KP Demands Release of Rs71 Billion in Hydel Profits from WAPDA
PESHAWAR: The Khyber Pakhtunkhwa (KP) government has formally requested the Water and Power Development Authority (WAPDA) to release Rs71.1 billion in outstanding Net Hydel Profit (NHP) to the province.
In a letter dated September 1, KP’s Finance Department noted that the province had already received Rs3 billion in arrears for the last fiscal year on August 18. However, NHP for the current fiscal, calculated at Rs34.5 billion, remains partially unpaid, with Rs5.762 billion for July and August still pending.
Additionally, arrears from FY 2024-25 totaling Rs28.6 billion have only partially been settled, leaving Rs22.8 billion outstanding. WAPDA and the federal government also owe KP Rs42.6 million for annual indexation between 2015-16 and 2024-25.
Finance Adviser Highlights Disparity:
Adviser to Chief Minister Ali Amin Gandapur, Muzzammil Aslam, criticized the federal government for unequal disbursement of hydel profits. He said KP received Rs34.58 billion in 2024-25, while Punjab received Rs65 billion, including an additional Rs30 billion in the last quarter.
Aslam stressed the urgent need to release the Rs71.7 billion owed and reminded that Prime Minister Shehbaz Sharif had assured resolution during the last Council of Common Interests (CCI) meeting in May 2025.
Background:
Under Article 161(2) of the Constitution, provinces hosting hydropower plants are entitled to NHP. KP has been seeking full implementation of the Kazi Committee methodology to calculate hydel profits, a process that has been under discussion since 2018.
The provincial government also suggested that federal funding for WAPDA development projects should come via the Public Sector Development Programme (PSDP), allowing NHP payments to flow directly to the province. KP has further proposed transferring hydropower projects to the province while allowing WAPDA to retain operation and maintenance, ensuring a fair share of revenue.
